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  1. #1
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    Question Does anyone use "Australian Scholarships Group"?

    Hi All!

    I'm just wondering if anyone has entered their child/children into an Education Fund through the Australian Scholarships Group?

    I had a representative come out to our home and meet with us last night & give a brief presentation on the products available.
    I was quite impressed and I thought it was a fantastic idea, however my DP thinks we should just open another bank account and create our own Education Fund for the two kids

    Basically, for those who don't know, the ASG fund gets you to put into it a nominated amount each week from when you start the fund to when your child turns 12 years old. From there they either give you back ALL your contributions as a lump sum payment on the anniversary date of your contributions beginning, in the year the child turns 12. Or you can choose to have the money paid back to you spread out over the 6 years of high school.

    So the idea of the program is for you to not have to pay for their High School Education by using this money you 'invested/contributed' while they were young.

    The next benefit is, if the child then goes on to University they will pay them a Scholarship of approx. $200 per calendar month - but only as long as they are in a registered Tertiary Education course.

    It sounded really good at the time & I would've signed up there and then, however DP was suggesting we open a separate bank account, put aside the money each week, earn the interest (so we end up with more at the end of the day) and then we support them through Uni/Tafe.

    I'm a bit skeptical with DP's idea as I know if we ever needed money for something quickly, we'd both just say, oh take it from the kids education account - we'll put it back. YEAH RIGHT!

    My DP & I are both tertiary educated and have done really well in our careers so far, both breaking six figure salaries by the time we turned 25! All I want is for my children to have the same opportunities we do!

    Anyway, which way would you all do it?

    Thanks in advance

  2. #2
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    I don't know how they got my number, although I suspect my hospital where I had DD 3 weeks ago. They call me relentlessly, so they are out IMO. Anyone who needs to call me everyday when I'm clearly not interested.....

    However I do see what your saying about a separate account and easy access. I've asked my mum to open an account in trust for DD. This way I have to run it by someone else before I can dip into the money I put into the account.

  3. #3
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    We are going to be investing money in shares for Noah. havent decided whether it will be for school or afterwards (deposit on a house, travel etc), depends how we are financially when school time comes. I tend not to buy into things like this, there has to be something in it for them iykwim. At the moment we have noah's money in a nab isaver acc which can only be accessed through online banking or telephone, so not too readily accessible. We also had the option of putting it in his name only which meant it couldnt be touched at all till he is a certain age where he can sign for it himself. This might be a better option so you dont have access to spending it? we have already delved into noah's a couple of times in emergency's, which is why I'm going to invest it in shares.

  4. #4
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    my parents did for both me and my sister

    it paid for me all through high school in private schooling and is still paying my sister (shes in grade 10). I also got a lump sum this year (my first year of uni) which i used to buy text books and kept alot of it for the actual uni fees!

    im greatful my parents did it for me i would have had no problem going to a state school but i looved my high school and im even more greatful they could help me out even a bit with uni !

    also i think my parents chose this idea rather than the normal bank account as once they put the money in they couldnt touch it ! they would just send out the money each year it a cheque in about January !
    Last edited by EmPowering; 19-11-2009 at 09:01.

  5. #5
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    Thanks for all your replies


    Quote Originally Posted by Emi84 View Post
    I don't know how they got my number, although I suspect my hospital where I had DD 3 weeks ago. They call me relentlessly, so they are out IMO. Anyone who needs to call me everyday when I'm clearly not interested.....

    However I do see what your saying about a separate account and easy access. I've asked my mum to open an account in trust for DD. This way I have to run it by someone else before I can dip into the money I put into the account.
    They did this to me for quite a while too, then I told them not to contact me again until DS was approx. 2, which was now....but they didn't get give up for about 3 months until eventually I told them to p*** off!

    Quote Originally Posted by em1984 View Post
    We are going to be investing money in shares for Noah. havent decided whether it will be for school or afterwards (deposit on a house, travel etc), depends how we are financially when school time comes. I tend not to buy into things like this, there has to be something in it for them iykwim. At the moment we have noah's money in a nab isaver acc which can only be accessed through online banking or telephone, so not too readily accessible. We also had the option of putting it in his name only which meant it couldnt be touched at all till he is a certain age where he can sign for it himself. This might be a better option so you dont have access to spending it? we have already delved into noah's a couple of times in emergency's, which is why I'm going to invest it in shares.
    Basically, the catch is they invest your contributions as you are paying them but you don't get any of the profit interest back from them doing so. At the end of the day, you get your contributions back but nothing extra. Therefore they are making plenty of $$$ from your money. So that's what's in it for them.

    Both the kids already have lots of shares & a savings accounts each, which we only put $10 p/week in each - but we want to use that for things like buying them a new car when they turn 18 & helping them with first home deposits etc.
    But it's definitely worth investing in shares for them, especially right now with the buy price of most shares being so low!

    Good Luck

    Quote Originally Posted by ezzza232 View Post
    my parents did for both me and my sister

    it paid for me all through high school in private schooling and is still paying my sister (shes in grade 10). I also got a lump sum this year (my first year of uni) which i used to buy text books and kept alot of it for the actual uni fees!

    im greatful my parents did it for me i would have had no problem going to a state school but i looved my high school and im even more greatful they could help me out even a bit with uni !

    also i think my parents chose this idea rather than the normal bank account as once they put the money in they couldnt touch it ! they would just send out the money each year it a cheque in about January !
    Oh that's fantastic - exactly what I wanted to hear! My son is already enrolled in a private school starting from Kindergarten so I think I will seriously consider this option as it just seems so much easier than saving it ourselves!

    Thanks again

  6. #6
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    My parents did this for me, i went to a private school too but im not sure how much of it actually covered the cost but the money you get at uni is a great help, i think first semester is $500 then semester 2 is $1000, but they only pay it for for three years so i have a 5 year degree so i dont get it for the last 2 years

  7. #7
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    Nope, I won't be doing it.

    Instead I have a kid's saving account for DS which is about 6%.

    Main reasons I won't be doing it ?

    - Guy that came to the house was REALLY pushy, rude-pushy. Telling me that he doesn;t get paid per visit, only when people join up (and thus pay the 120 dollar join up fee).

    - I think it is a great idea that you get part of the money back during high school, not much though (depends how much you put in I guess)

    - I know of 3 people with kids who wasted the money when they got control of it, and it has to go into the kids account for tax purposes. Lovely kids, but the money went on clothes, and clubbing, and coffee and fun times. While I agree that it could be fantastic and the kids could really benefit while they study what if DS doesn't want to study? or doesn't have the maturity at 17 to handle money wisely?

    Anyway, my 2 c

  8. #8
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    I was also wondering about this ...

    I'm not sure what the benefit is, if you get no more back than what you put in? They invest the contributions - but don't share the profits, is that right?

    So at the end of the day, they only pay out exactly what you have paid in ... Why would you do it then - is it because it guarantees you will not draw on the funds before high school? Like others have said - it seems to make more sense to put it in an account that at least pays interest

    I suppose if your kid goes to uni is the only possible benefit as then they pay out more than you paid in?

  9. #9
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    Yes you don't get any extra money than you put in, BUT then the interest that ASG made off your money pays for the kids uni. So at the end of the day you get all your money back and uni is paid for.

  10. #10
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    Ok, so here's the fine print.

    You put money in that earns interest. You start getting money back when your child goes into highschool and get money back throughout their highschool years. BUT that money is ONLY the money you put in, not the interest. If your child does not go onto university (or takes more than 1 years break) you forfeit ALL the interest and it goes back to ASG. That's how they make their money.

    Now you may think, oh I went to uni my child will want to go to Uni, but it your child's choice and predicting preference for going to university 18 years in advance is a bit of a stretch.

    So, for us we decided against it. Although we are both university trained and it's highly likely that our ds will go to uni, we want him to do whatever is best for him at the time. We don't want to be pressuring him to go to university if he wants to do an apprenticeship or work overseas for a couple of years or something. There's no way I'm putting money in for 18 years only to forfeit all the interest. It's a waste of time/money.

    You are much better off putting the money into a high savings account like ING. Sure, you'll pay tax on the interest (it has to be in your name), but your DP is right, if something happens and you really need the money (eg. your child wants to go overseas on exchange in year 10), then you can access it. And if they don't want to go to uni you still get the benefit of the interest.

    By the way, the salespeople can be REALLY pushy. We met with a guy when our ds was about 8 months old. I think our last call was about 6 months ago, after putting him off (we thought for good) multiple times along the way. My ds is now 3.5.


 

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